State regulators should be barred from imposing regulations on new Internet-based telephone service, otherwise they could slow growth of the nascent product, several top U.S. lawmakers said Wednesday.
U.S. telephone carriers ranging from upstarts like Vonage Holdings Corp. to mainstays such as BellSouth Corp. have been deploying the service, which relies on high-speed Internet connections, in part to cut costs and boost profits.
“There should be only one federal set of rules that apply” to calls made using technology called Voice over Internet Protocol, or VoIP, said Rep. Joe Barton, chairman of the House Energy and Commerce Committee and a Texas Republican.
“VoIP providers should not have to battle with 51 different sets of rules across the country,” he said. “Let’s make sure that government does not limit VoIP’s growth.”
In contrast, traditional wireline telephone service has been heavily regulated at the state and federal level for decades.
His comments were echoed by several members of the committee, but some lawmakers also said there should be steps taken to protect consumers and ensure that law enforcement can still conduct surveillance as needed.
“While VOIP providers need not be subject to legacy economic regulations ... other core regulations remain critical, including those which pertain to universal service, access, emergency services, law enforcement, and individuals with disabilities,” said Rep. John Dingell, the ranking Democrat on the panel and from Michigan.
At least two bills have been introduced aimed at taking a light regulatory approach to the nascent service, but there is little expectation that they will move this year since Congress will break soon for summer recess and the fall elections.
Providers of Internet-based calls have been pleading with Congress, state regulators and the FCC to avoid regulating the service.
“Government cannot keep pace with the technology cycle and should not try to legislate on a technology-specific basis,” Margaret Greene, president of regulatory and external affairs at BellSouth, told the House telecommunications subcommittee.
State regulators defended their role in overseeing telecommunications, arguing that the few steps taken by a handful of states have been aimed at preserving services and features consumers want and need.
“State commissions are well suited to the watchdog and referee role because they are in the local communities, staffed to be responsive and have unique experience in the telecom business,” said Robert Nelson, a commissioner on the Michigan Public Service Commission.
